Consumer body Mumbai Grahak Panchayat (MGP) in a recently conducted online survey of homebuyers in Maharashtra found there were large scale RERA violations in the state due to lack of proper awareness.

The survey focused on non-registration of on-going real estate projects with MahaRERA and non-execution of agreement for sale by the builders despite accepting more than 10 percent of flat cost from homebuyers.

The survey found that out of 707 homebuyers, 374 homebuyers (53 percent) have reported that their builder has not registered their on-going real estate project with MahaRERA. Out of these 374 home-buyers, 233 ( i.e. 62 percent) have not complained to MahaRERA about nonregistration of their projects.

Out of 707 homebuyers, as many as 35 percent home-buyers did not know that their on-going projects were required to be registered by their builder with MahaRERA.

The survey also revealed that Out of 707 homebuyers, almost 41 percent did not know that for non-registration of the project, the builder can be penalized under RERA act with up to 10 percent of the project cost.

The second part of survey which focused on non- registration of the agreement revealed that out of 640 home-buyers, 302 homebuyers ( i.e. 47%) have reported that inspite of paying more than 10 percent of the flat cost, their builder has not executed Agreement for Sale.

Out of 677 homebuyers as many as 376 home-buyers (almost 56 percent) did not know that the builder cannot accept more than 10 percent of the flat cost without executing Agreement for Sale.

Out of 677 Home buyers, 410 home-buyers ( i.e. almost 61 percent) did not know that for accepting more than 10 percent of the flat cost without executing Agreement for Sale, the builder can be penalized up to 5 percent of the project cost under RERA Act.

The MGP now plans to take up with MahaRERA the issue of non-registration of on-going projects by some builders and will insist on slapping heavy penalties as provided under RERA act. The RERA Act provides for penalty upto 10 percent of the project cost on the builders, if the on-going project, which did not have Commencement Certificate as on 1st May 2017, is not duly registered with MahaRERA.

Based on the inputs received in this Survey, MGP will also inform MahaRERA the names of the builders, who have not executed the Agreements for Sale but have accepted more than 10 percent flat cost from homebuyers.

“It has also become clear that there is an urgent need to create a widespread awareness about the homebuyers’ Rights and Builders’ obligations under RERA. Sec 33 of RERA has mandated MahaRERA to create such awareness among consumers. MGP will call upon MahaRERA to extend all possible help to MGP and other consumer bodies to create such widespread awareness,” said Shirish Deshpande, Chairman, MGP.